Consider a process consisting of three resources. Assume there exists unlimited
ID: 348851 • Letter: C
Question
Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 7 minutes per unit. Resource 2 has a processing time of 3 minutes per unit. Resource 3 has a processing time of 5 minutes per unit. All three resources are staffed by one worker and each worker gets paid $14 per hour. Instruction: "Round "cost of direct labor" and "target manpower" to 2 decimal places. Round 'average labor utilization" percent and "takt time" to 2 decimal places. a. What is the cost of direct labor? e unit b. What is the labor content? minutes per unit How much idle time does the worker at resource 3 have C. per unit? minutes per unit d. What is the average labor utilization? percent Assume the demand rate is 23 units per hour what is the takt time? e. minutes per unit s Assume the demand rate is 23 units per hour. What is the target manpower? minutes per unitExplanation / Answer
What is the cost of direct labor
Resource 1 is the bottleneck center at 7 minutes per unit. The Direct Labor cost is (7 minutes per resource × 3 resource centers/60 minutes per hour) × $14 per hour = $4.9
What is the labor content?
Labor content = 7 minutes Resource 1 + 3 minutes Resource 2 + 5 minutes Resource 3 = 15 minutes
How much idle time does the worker at resource 3 have per unit
The idle time at Resource 3 = 7 minutes Resource 1 (bottleneck) – 5 minutes Resource 3 = 2 minute idle time
What is the average labor utilization
Labor Utilization = demand/ capacity = 15/21= 71.43%
Assume the demand rate is 23 units per hour. What is the takt time
Takt Time = 1/Demand rate = 1/(23 customers/60 minutes) = 2.61 minutes
Assume the demand rate is 23 units per hour. What is the target manpower
The target manpower = Labor Content/ Takt Time =15/2.61= 5.75